Note to Editors: Please find a linked soundbite in English by Cheryl Philips MP.
The DA in the Rustenburg Local Municipality is concerned by the R1,27 million in taxpayer money spent on the Rustenburg Rapid Transport System (RRT) in August alone.
When the Minister of Transport, Fikile Mbalula, visited the RRT project in July 2022, he sugar-coated the truth by stating that the excess cost of the project is R2 billion. He also mentioned that the project’s original capital investment was standing at R3,5 billion in 2014 and that a forensic investigation will take place to determine where the billions went and who is to be held responsible for misappropriating funds.
The previous Municipal Manager, Victor Makona, responded in writing to inquiries from the DA, stating that the RRT earned a total of R42,700.00 from ticket sales in August 2022 and carried 720 passengers during that month, costing taxpayers a whopping R1,704.59 per trip.
The DA was met with silence when we asked the current Acting Municipal Manager, Frans Temiki Mabokela, how much money had been spent overall on the RRT since the end of August 2022.
If the project’s initial R3,5 billion capital outlay had been placed in an interest-bearing bank account in 2014, the city could have funded 5,5 million taxi or bus trips for low-income residents, retirees, and students, while generating about R930 million in capital gains interest for the fiscus, and the original R3,5 billion would still be in the bank. However, Rustenburg ratepayers and the South African taxpayer are now burdened with Rustenburg’s very own SAA.
Obed Moleele, Manager of Business Development in the Rustenburg Municipality, said in a Carte Blanche interview last year that the municipality anticipated recovering between 40% and 50% of the monthly running costs from ticket sales. Considering that there was only one route operating in August, the operating expenses came to R1,27 million, leaving taxpayers with an enormous R7,62 million charge per year for servicing just one route.
RRT branded minibus taxis are now operating routes to and from Geelhoutpark, which were previously intended to be only used by RRT buses, in addition to the present busses operating on the main routes.
The DA has submitted written questions to Minister Mbalula to enquire about who will be responsible for the maintenance and ongoing running costs of the buses and taxis.
The DA calls on the Minister of Transport to pause the project immediately until he can provide an update on the status of the investigation into the wasteful and ineffective spending into this project by the Rustenburg Local Municipality since 2008.
South Africans cannot afford to see the next R1,4 billion needed to complete the project looted and wasted and then still spend millions every month at a loss to keep busses and taxis on the road.